Industrialised countries are heavily dependent on large centralised electricity generation plants to produce power. For example, 80% of the electricity generated in Australia is produced by coal power plants. These power plants are usually built away from the cities where the power is consumed.
In addition, secondary energy sources are becoming increasingly important. Common renewable energy sources include photovoltaic (PV) solar cells, wind turbine generators, wave turbine generators and tidal turbine generators. These sources can be connected to deliver electrical energy to the standard 50 Hz AC power distribution grid by means of AC inverter schemes designed to synchronize with the power grid.
Because the secondary sources deliver fluctuating amounts of energy, connection to the power grid invariably requires some energy storage, with an energy delivery time frame in the order of hours or days. Examples of storage systems include: high capacity batteries (electrical “flow batteries”), solar “molten salt”, solar hot water, and solar generated biogas where electrical energy is generated in a secondary process such as steam turbine generators. These schemes are relatively expensive and are only economically viable on large scale electrical power systems.